✋️Stop-Loss: Quick Guide 🛡️
What's a Stop-Loss?
It's like a safety net. If the price drops to a certain point, your order will be filled automatically to limit losses.
Two Main Types:
* Stop-Limit: You set two prices:
* Stop Price: When the price hits this, your sell order starts.
* Limit Price: Your order will be filled at this price.
* Example: You bought Coin X at $10. Set stop at $9.50, limit at $9.45. If Coin X drops to $9.50, Binance tries to sell it at $9.45.
* Stop-Market: You set one price:
* Stop Price: When the price hits this, Binance sells your crypto at the best price available right then.
* Example: You bought Coin Y at $20. Set stop at $18. If Coin Y drops to $18, Binance sells it quickly at whatever price it can get.
Smart Ways to Set Your Stop:
* Below Support: Find a price where the coin usually bounces back (support). Set your stop a bit lower. If it breaks that, it might keep falling.
Simple: If a coin often stays above $5, set your stop at $4.90.
* Risk Percentage: Decide how much money you're okay losing on a trade (like 1% of what you invested). Calculate the price that would be that loss and set your stop there.
* Simple: You put $100 in a coin. You don't want to lose more than $1. Set your stop at the price where your investment would be worth $99.
Important Tips:
* Think about swings: Don't set your stop too close to the current price, or normal ups and downs might trigger it too early.
* Market moves fast: Stop-market sells quicker but might not get you the exact price you wanted. Stop-limit is more specific but might not sell if the price drops very fast.
* Check your stops: Always double-check the prices you entered before confirming!
Using stop-loss orders wisely helps protect your money when trading crypto on Binance. Choose the method that fits your trading style and how much risk you're comfortable with.